TORONTO, April 10 /CNW/ - Morgan Stanley Investment Management Inc.
("MSIM") announced today that on or about January 5, 2007, MSIM together with
certain affiliated entities acquired, as passive investments in the ordinary
course of business, ownership or control over greater than 10% of the issued
and outstanding units of Legacy Hotels Real Estate Investment Trust ("Legacy
REIT" or the "Issuer") (TSX:LGY.UN).
In connection with its holdings in Legacy REIT, MSIM and its affiliated
entities have, to date, inadvertently failed to make necessary filings as
required under applicable Canadian securities laws, and are currently taking
steps to fulfill their filing requirements. MSIM and its affiliated entities
will be filing an Early Warning Report as prescribed under applicable Canadian
securities laws in connection with this release.
As of April 6, 2007, MSIM, and certain of its investment advisory
affiliates, hold 12,315,934 units representing approximately 11.47% of the
outstanding units of Legacy REIT, over which they have control but not
beneficial ownership. Certain of MSIM's non-investment advisory affiliates
hold 35,759 units representing approximately 0.03% of the outstanding units of
Legacy REIT, over which they have ownership and control. The aggregate
holdings of 12,351,693 units represents approximately 11.51% of the
outstanding units of Legacy REIT. The foregoing calculations are based on
107,334,236 units issued and outstanding as at April 6, 2007.
MSIM, and its affiliated entities, have acquired units of Legacy REIT
through secondary market trading on the Toronto Stock Exchange, certain
European exchanges and through the U.S. over-the-counter market. All units of
the Issuer acquired by MSIM and its affiliated entities have been acquired in
the ordinary course of business as passive investments only and not for the
purposes of influencing management control of the Issuer.
MSIM and its investment advisory affiliates provide asset management
services to clients, generally on a discretionary basis. In the ordinary
course of its advisory business, MSIM and its affiliated investment advisory
entities exercise control and direction over securities held in client
accounts.
Affiliated entities of MSIM having holdings included in this release are
Morgan Stanley Investment Management Limited, Morgan Stanley Asset &amp;
Investment Trust Management Company Limited, Morgan Stanley Investment
Management Inc., Morgan Stanley Investment Advisors Inc., Van Kampen Asset
Management, and Morgan Stanley &amp; Co. International Limited.

For further information:

For further information: and to obtain a copy of the Early Warning
Report in connection with this release please contact Erica Platt, Corporate
Communications, at (212) 762-6848; The report will also be available at
www.sedar.com; Morgan Stanley Investment Management Inc., 1221 Avenue of the
Americas, New York, NY 10020